Arrests for April 2005
These arrests were made possible through the cooperation of the Frauds Bureau, law enforcement, the insurance industry and the public.
To report suspected incidents of insurance fraud, call 1-888-FRAUDNY
CAUGHT!
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GUILTY
On April 14, 2005, Charles D. Zonneville, a former licensed insurance agent, pled guilty to offering a false instrument for filing in full satisfaction of the charges against him. Zonneville is scheduled to be sentenced on 6/21/05. Under the terms of his plea agreement, he will pay restitution in the amount of $2,285 to one of his victims, serve a term of five years’ probation and stipulate to the revocation of his insurance licenses. He issued fraudulent auto identification cards and failed to forward the premiums to any insurance companies. Subsequently, his clients discovered, sometimes after being involved in an accident, that the ID cards did not represent valid insurance coverage. On 9/13/04, investigators executed a search warrant at Zonneville’s place of business and removed customer files, computers and other documents that would be used as evidence in the case. A joint investigation by the Insurance Department’s Frauds and Consumer Services Bureaus, the State Police and the Department of Motor Vehicles led to his arrest.
- FORMER STATE TROOPER
Arrested on 4/28/05
Charged with grand larceny in the 2nd degree, insurance fraud in the 2nd degree, perjury in the 1st degree, offering a false instrument for filing in the 1st degree and committing a fraudulent practice under the Workers’ Compensation Law
A former New York State Police Trooper began collecting workers’ compensation benefits after being classified permanently disabled due to a work-related injury. He subsequently submitted reports to the State Insurance Fund stating that he was unable to work. He also gave sworn court testimony on two occasions that he knew contained materially false information about the status of his employment. An investigation by the Frauds Bureau and the State Fund uncovered evidence that the suspect is the owner of several businesses in the Liberty/Monticello area. If convicted of the charges, he faces up to 15 years in state prison.
- WORKERS’ COMP FRAUD
Arrested on 4/24/05
Charged with falsifying business records in the 1st degree and violation of the Workers’ Compensation Law
The defendant in this case provided false information on his claim for workers’ compensation benefits. He also continued to work while collecting benefits. An investigation by the Frauds Bureau, based on information provided by Federated Mutual Insurance Company, led to his arrest.
- DOUBLE DIPPING
Arrested on 4/21/05
Charged with grand larceny in the 4th degree
Following an auto accident on 5/10/04, a Buffalo, NY, resident filed a claim with his insurer, New York Central Mutual Fire, and was paid $1,644 for the damage to his car. However, he also filed a claim against the insurer of the other driver involved in the accident and was paid an additional sum of $1,883. His arrest was the result of an investigation by the Frauds Bureau.
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NO COVERAGE
Arrested on 4/13/05
Charged with falsifying business records in the 1st degree and violation of the Workers’ Compensation Law
A joint investigation conducted by the Frauds Bureau, the State Insurance Fund and the State Police led to the arrest of a self-employed contractor for presenting a fraudulent Certificate of Insurance to a construction company, maintaining that he had the required workers’ compensation coverage when in fact no such coverage existed.
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LOG JAM
Arrested on 4/12-13/05
Charged with insurance fraud in the 3rd degree and falsifying business records in the 1st degree
The co-owners of a logging company were accused of conspiring to falsely report to the Oswego County Sheriff’s Department in December 2001 that a 1992 Timberjack 450B logskidder valued at $41,000 was stolen from the woods in Oswego County. One of the defendants then filed a claim with Peerless Insurance Company which issued a check for $39,650 for the replacement value of the machine. However, during an investigation by the Frauds Bureau, the logskidder was recovered where the defendants had stored it. One defendant was arrested and charged on 4/12 and the other on 4/13.
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NO BENEFITS WARRANTED
Arrested on 4/7/05
Charged with insurance fraud in the 3rd degree, falsifying business records in the 1st degree, perjury in the 1st degree and committing a fraudulent practice under the Workers’ Compensation Law
An allegedly disabled New York State Correction Officer was charged with submitting fraudulent reports to the State Insurance Fund and giving false sworn testimony in order to collect workers’ compensation benefits that he had no legal right to collect. An investigation by the Frauds Bureau, based on a report of suspected fraud by the State Fund, revealed that during the period in question the suspect was working as a janitor at a local tavern in the Elmira area.
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PAINT JOB NEEDED
Arrested on 4/7/05
Charged with falsifying business records in the 1st degree and insurance fraud in the 4th degree
A Syracuse, NY, truck driver reported that his 2004 Nissan Maxima was vandalized while parked at a local motel. On 2/7/05, he filed a claim with Progressive Insurance Company and produced the car on which a key had been used to completely destroy the paint job. The damage was estimated at $2,390 and he filed a claim for that amount. However, an investigation by the Frauds Bureau and the State Police uncovered evidence that the suspect himself had caused the damage to the car.
- MOVEABLE DATES
Arrested on 4/6/05
Charged with insurance fraud in the 3rd degree, grand larceny and driving without insurance
An upstate waitress filed a claim with Progressive Insurance Company stating that her car sustained extensive damage as a result of an accident on 12/5/04. Progressive issued a check for $3,784 to cover the damage. In the course of an investigation, Frauds Bureau investigators discovered that the accident had actually occurred on 9/23/04. However, the suspect did not have any insurance coverage at that time. So she subsequently purchased a policy and falsely reported the date of the accident as 12/5/04 when the coverage was in place.
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OH, BARTENDER
Arrested on 4/4/05
Charged with insurance fraud in the 3rd degree, falsifying business records in the 1st degree and committing a fraudulent practice under the Workers’ Compensation Law
A Kingston, NY, resident provided false information regarding his employment status to Liberty Mutual Insurance Company in order to collect workers’ compensation benefits to which he was not entitled. An investigation by the Frauds Bureau, based on information provided by Liberty Mutual, revealed that during the time in question the suspect was employed as a bartender in a local tavern.
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FALSE REPORT
Arrested on 4/4/05
Charged with insurance fraud in the 3rd degree and attempted grand larceny in the 3rd degree
A joint investigation conducted by the Frauds Bureau, the Rochester Police Department and GEICO Insurance Company’s SIU led to the arrest of a Rochester business man. On 2/4/05, the defendant reported that his 1997 Eagle Vision had been stolen and filed a claim with GEICO for the loss. However, when confronted with the evidence uncovered in the investigation, he confessed that he had lent his car to an acquaintance and when it was not returned as promised, he falsely reported it stolen in order to obtain the insurance settlement.
- AGENT FRAUD
Arrested on 4/1/05
Charged with grand larceny in the 3rd degree
A licensed life insurance agent was accused of soliciting and obtaining $15,000 from a client under the false pretence that he would establish a secure money market account in her name and deposit the money for her use. However, an investigation by the Frauds Bureau revealed that he diverted the money to his personal account.
PRIOR SUPPLEMENTS
March 2005
- SENTENCED
Hameraj Singh was arrested on 7/7/04 on charges of forgery, possession of a forged instrument and grand larceny for diverting two Empire Insurance Company checks to his personal account. He was convicted on 3/14/05 of disorderly conduct and sentenced to full restitution of $1,895.
- IDENTITY THEFT
Arrested on 3/22/05
Charged with grand larceny, forgery, falsifying business records, scheme to defraud and offering a false instrument for filing
An investigation by the Frauds Bureau and the Attorney General's Office brought about the arrest of a former licensed broker. This defendant applied for and obtained a broker's license on 2/16/94 in the name of someone who until recently was in prison serving 18 years for manslaughter. The defendant continued to renew the license until 10/31/04, a period of more than ten years. The investigation was initiated after the New York Auto Insurance Plan began to suspect that the defendant using the fictitious name was submitting suspicious policy information to The Robert Plan.
- NO-FAULT FRAUD
Arrested on 3/7/05
Charged with insurance fraud
The defendant in this case participated in a staged accident and then sought medical treatment for nonexistent injuries under his no-fault coverage. The Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad pooled resources in the investigation that led to his arrest.
- DONATIONS ACCEPTED
Arrested on 3/6/05
Charged with insurance fraud in the 3rd degree and grand larceny in the 3rd degree
A self-employed hair dresser applied for lost wage benefits claiming that she was not able to work after an auto accident at the end of 2003. She also swore in an examination under oath that she was unable to work. She maintained that she gave hair cuts but did not receive payment. Instead, her clients gave her "donations" to help her make ends meet. However, an investigation by the Frauds Bureau concluded that, in addition to the lost wage benefits, she was in fact receiving payment for her hair-dressing services. Investigators also learned that the only cosmetology license she possessed had been issued in Ohio and had expired in January 2000. Moreover, she had been operating her business out of her home which was not zoned for commercial use.
JANUARY 2005
- SENTENCED
Steven Newman, a revoked broker, was convicted on 12/6/04 of insurance fraud and sentenced on 1/16/05 to court-ordered restitution of $27,436. An investigation by the Frauds Bureau and the Manhattan DA’s Office led to his arrest in May 2004 for collecting $57,000 in premiums from numerous clients but failing to forward the money to an insurance company.
